Kraken Seeks Court Intervention
Crypto exchange Kraken is taking the fight against the United States Internal Revenue Service (IRS) and its demand to present critical exchange user information to the court. The exchange deemed IRS’s demand for customer information as an “unjustified treasure hunt.”
Kraken’s Request Cites Coinbase Case
The exchange, in its request, cited Coinbase’s case from 2017 and said that the tax agency has gone far beyond the rules set by U.S. District Judge Jacqueline Scott Corley. In the Coinbase case, the agency scaled back its initial demand after Coinbase’s continuous refusal.
Kraken and Coinbase: United Against Regulatory Scrutiny
Kraken joined Coinbase in its efforts to push back against growing regulatory scrutiny by American regulators. Coinbase is currently fighting its own battle against the U.S. Securities and Exchange Commission over offering crypto staking services.
Crypto Industry Warns of Offshore Migration
The growing regulatory scrutiny has become a growing concern for crypto companies in the U.S. The likes of Coinbase CEO Brian Armstong and USD Coin issuer Circle CEO Jeramy Allaire have warned that the growing pushback from the regulatory bodies will force budding crypto companies to move offshore.
Conclusion
In conclusion, the battle between Kraken, Coinbase, and U.S. regulators reflects the ongoing tension in the crypto industry as companies seek to protect user privacy while navigating the complexities of compliance. The outcome of these legal battles may significantly impact the future of cryptocurrency regulation in the United States and determine whether the country can maintain its position as a hub for innovation in the space. Ultimately, it remains crucial for the crypto industry and regulators to find a balanced approach that promotes growth while ensuring consumer protection and adherence to the law.
